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Business Articles Awards > Asian Antitrust

MOFCOM Cracking Down on Failures to Notify Qualifying Mergers, Acquisitions and Joint Ventures

Simon Baxter, Frederic Depoortere, Ingrid Vandenborre, James S. Venit, and Andrew L. Foster, Skadden Arps Memorandum, December 2015

See Ingrid Vandenborre's resume See Simon Baxter's resume See Andrew L. Foster's resume See Frederic Depoortere's resume See James Venit's resume

China’s Anti-Monopoly Law requires businesses to notify transactions to the Ministry of Commerce (MOFCOM) for merger control review, so long as the parties meet certain revenue thresholds1 and the transaction involves a change of control or the establishment of a joint venture. Despite these requirements, many businesses — both Chinese and multinational — try to avoid such a filing. Multinational companies may fear the potential length and complications that can arise during MOFCOM review, while some Chinese companies may have the (outdated and unsupported) perception that Chinese businesses need not be as rigorous as multinationals in observing the filing requirements. MOFCOM has been working hard to change these perceptions and has made clear that qualifying transactions must be notified or the offending businesses will face fines or worse.

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